(Reuters circulated the following on September 11.)
NEW YORK — Railroad CSX. raised its 2008 profit forecast on Thursday, citing strong industry momentum, and said long-term earnings growth would be higher than previously expected, sending its shares up nearly 5 percent in premarket trading.
CSX said it expected 2008 earnings of $3.65 to $3.75 per share, up from its earlier outlook of $3.40 to $3.60 and above the $3.57 expected by analysts polled by Reuters Estimates.
Strong momentum is expected to continue beyond 2008, the Jacksonville, Florida-based company said.
CSX has benefited from strong shipments of metals, fertilizers, ethanol and coal for exports, and has been raising prices. Coal exports are expected to remain strong at least through 2009, Chief Executive Michael Ward has told Reuters.
The company said it expected compound annual earnings growth of 20 percent to 25 percent through 2010 over 2008, compared with its earlier forecast of 18 percent to 21 percent growth compared with 2007 results.
CSX shares rose to $57.45 in trading before the market opened from Wednesday’s New York Stock Exchange close of $54.85.